Buying a home in Houston can require a significant amount of money upfront.
Between the down payment, closing costs, prepaid taxes and insurance, and the monthly payment itself, many buyers discover that qualifying for a mortgage is only part of the challenge.
For certain Houston residents affected by Hurricane Harvey, one City of Houston program was created to dramatically reduce that barrier.
The Harvey Homebuyer Assistance Program 2.0, commonly called HbAP 2.0, can provide eligible homebuyers with up to $125,000 in assistance toward purchasing a home.
Yes, up to $125,000.
The assistance can potentially be used for down payment assistance, eligible closing costs and prepaid expenses, principal reduction, and mortgage interest-rate reduction. The program is specifically intended for qualifying residents who lived within the City of Houston’s jurisdiction when Hurricane Harvey struck on August 25, 2017.
However, there’s an extremely important update for buyers considering the program in 2026.
IMPORTANT AUGUST 2026 FUNDING UPDATE
The City of Houston currently reports that available program funds have been exhausted and additional applications are not being accepted or processed at this time.
If you’ve already received a valid pre-approval letter, you should continue following the timeline in that letter. The City says extensions will not be granted. Applicants whose files close because their pre-approval expires may reapply if funding is replenished and applications reopen. Future applications are expected to be handled on a first-come, first-served basis.
That does not mean Houston buyers should forget about this program.
If you potentially qualify, understanding the requirements now can put you in a better position to act if additional funding becomes available.
You can also check the City of Houston Harvey Homebuyer Assistance Program 2.0 page for the current program status.
What Is the Harvey Homebuyer Assistance Program 2.0?
The Harvey Homebuyer Assistance Program 2.0 is administered by the City of Houston Housing and Community Development Department.
The City launched HbAP 2.0 in June 2025 with more than $19 million committed to helping Houstonians affected by Hurricane Harvey move toward homeownership. By December 2025, the City reported that 29 Houston families had purchased homes through the program, representing more than $2.57 million in assistance.
The program can provide an eligible buyer with:
Up to $125,000 in homebuyer assistance
Depending on the buyer’s qualifications and transaction, assistance can be used toward eligible expenses including:
- Down payment
- Reasonable closing costs
- Prepaid homeowners insurance
- Prepaid mortgage interest
- Property taxes
- Principal reduction
- Mortgage interest-rate reduction
The program funds cannot be used to pay REALTOR® commissions.
That flexibility is one reason this program can be so powerful.
Instead of thinking about the assistance solely as money for a down payment, qualifying buyers may potentially use the program to address several parts of the affordability equation.
Who Qualifies for Harvey Homebuyer Assistance 2.0?
This isn’t a general Houston down payment assistance program available to everyone.
The City currently lists several specific eligibility requirements.
To qualify, an applicant must:
- Have lived within Houston city limits on August 25, 2017
- Be a U.S. citizen or legal permanent resident
- Be a first-time homebuyer or have lost a home because of Hurricane Harvey
- Complete an 8-hour HUD-approved homebuyer education course
- Qualify for a fixed-rate mortgage from a recognized lender
- Have household income at or below 120% of Area Median Income
- Meet the City’s other program requirements
If you’re uncertain whether your 2017 Houston address falls within the required jurisdiction, the City provides a mapping tool from its official HbAP 2.0 page.
Check the official HbAP 2.0 eligibility requirements and map
Do You Have to Be a First-Time Homebuyer?
Generally, the program requires you to be a first-time homebuyer or to have lost your home because of Hurricane Harvey.
That distinction is important for former homeowners affected by the storm.
And if HbAP 2.0 doesn’t fit your circumstances, don’t assume that means homebuyer assistance isn’t available to you at all.
Our Texas First-Time Home Buyer Programs guide explains other Texas programs and financing options that may be worth exploring.
Does the Program Have a Credit-Score Requirement?
Here’s one of the more interesting aspects of HbAP 2.0:
The City says the Harvey Homebuyer Assistance Program itself does not consider a credit score.
That does not mean you can automatically qualify for a mortgage regardless of your credit.
Remember, applicants must still obtain a qualifying fixed-rate mortgage from a recognized lender.
Your mortgage lender will have its own underwriting requirements.
The distinction is that HbAP 2.0 itself does not impose a separate credit-score requirement.
What Are the Debt-to-Income Requirements?
The program does have debt-to-income requirements.
According to the City’s current FAQ, HbAP 2.0 requires:
33% front-end ratio
and
45% back-end ratio.
The front-end calculation looks at the new housing payment, taxes and insurance relative to gross monthly income.
The back-end calculation incorporates the mortgage payment along with other monthly debt obligations.
This is another reason getting your finances reviewed early is so important.
Our How Much House Can I Afford in Texas? guide explains why your comfortable home price should be based on much more than the maximum amount a lender might approve.
Is the $125,000 Free Money?
Not exactly.
This is one of the most important parts of the program to understand.
The assistance is structured as a 0% interest, forgivable loan secured by a lien against the property.
If you remain in the home for the required compliance period and satisfy the program requirements, the assistance can be fully forgiven.
The required period depends on how much assistance you receive:
| Assistance Amount | Compliance Period |
|---|---|
| Up to $50,000 | 5 years |
| $50,000.01 to $75,000 | 8 years |
| $75,000.01 to $125,000 | 10 years |
If you sell or move out before completing the required period, the City says you may have to repay a proportional portion of the assistance based on the remaining residency period.
So if you receive $100,000 in assistance, for example, you should understand that you’re accepting a 10-year compliance obligation, not simply receiving a $100,000 check.
That doesn’t necessarily make the program unattractive.
It simply means you should understand the long-term commitment before using it.
Can You Refinance Later?
Potentially, but the City’s lien doesn’t simply disappear because you refinance.
If your mortgage changes during the compliance period, the City requires updated information and provides a process for requesting a subordination agreement.
That’s especially important in a changing interest-rate environment.
If you’re thinking about different mortgage structures in general, our Types of Mortgage Loans guide explains conventional, FHA, VA, USDA, fixed-rate and other financing options.
What Kind of Home Can You Buy?
The program isn’t limited exclusively to traditional detached houses.
According to the City’s current FAQ, an eligible property serving as the buyer’s principal residence can include:
- Single-family home
- Condominium
- Townhouse
- Cooperative unit
- Manufactured home on a permanent foundation
The property still has to satisfy the program’s underwriting, environmental, inspection and other requirements.
Is There a Maximum Home Price?
Yes, but the City does not publish one permanent number that applies forever.
The program’s maximum qualifying sales price is based on current home-sales data, and the City says that information is reviewed every 6 months.
That’s important because buyers shouldn’t find a home based on an old program price limit they saw in a previous article or social-media post.
Always verify the current limit before beginning your search.
How Much Does the Buyer Have to Contribute?
The City’s current FAQ states that the buyer must contribute a minimum of $350 toward the transaction.
That contribution can potentially be applied toward expenses such as the:
- Inspection
- Down payment
- Appraisal
- Other qualifying transaction costs
The City itself does not charge a participation fee.
That’s a remarkably small minimum contribution compared with the potential assistance available, although your actual transaction could require additional personal funds depending on the property, mortgage and circumstances.
Homebuyer Education Is Required
Before participating, buyers must complete an 8-hour homebuyer education course through a HUD-approved provider.
I actually think this requirement can be beneficial.
A home purchase involves much more than qualifying for financing.
Buyers need to understand:
- Mortgage payments
- Property taxes
- Homeowners insurance
- Inspections
- Maintenance
- Closing costs
- Credit
- Budgeting
- Escrow
- Long-term homeownership responsibilities
Education becomes even more important when you’re combining a first mortgage with a substantial assistance program.
You Still Need Mortgage Pre-Approval
HbAP 2.0 doesn’t replace your mortgage.
You must qualify for an eligible fixed-rate mortgage from a recognized lender.
That’s why mortgage preparation should happen early.
Our Mortgage Pre-Approval Texas guide explains what buyers should expect during pre-approval and why establishing a realistic payment before shopping can prevent problems later.
Once the program begins accepting applications again, being financially prepared could become particularly important because the City says applications will be processed on a first-come, first-served basis when funding is replenished.
If you believe you may qualify and want to prepare your home-buying strategy now, schedule a 15-minute consultation with Kory White and we can discuss where you are in the process and what you can work on while waiting for a funding update.
How the HbAP 2.0 Process Works
When funding is available, the City’s process begins before you simply find a house and ask for $125,000.
The preliminary steps include finding a REALTOR®, completing the required 8-hour HUD-approved homebuyer education course, and obtaining mortgage pre-approval.
From there, the process moves through several phases.
Phase 1: Intake
The applicant submits the required application and supporting documentation so the City can determine eligibility.
Phase 2: Property and Underwriting
After receiving a Conditional Reservation Letter, the buyer can place an eligible property under contract.
The lender and other parties then provide documents including the sales contract, loan estimate, credit information and property documentation.
The property must also complete the City’s environmental review and inspection requirements.
Phase 3: Closing
Once requirements have been satisfied and the City issues its Commitment Letter, the lender, title company and City coordinate the documentation and assistance needed for closing.
When active, the City estimates approximately 6 weeks from submission of a complete application, assuming there are no outside delays.
That timeline needs to be considered when negotiating a purchase contract.
You Still Need an Independent Home Inspection
The City performs an inspection as part of its process, but there’s an important distinction:
The City’s inspection does not replace your independent home inspection.
The City specifically recommends that buyers obtain their own inspection, and a TREC inspection is required for newly constructed properties after construction has been completed.
Assistance of $50,000, $75,000 or even $125,000 doesn’t make property condition less important.
You’re still buying the house.
You still need to understand what you’re buying.
Flood Risk Matters
This is Houston.
Flood risk deserves serious consideration regardless of which homebuyer program you use.
As part of HbAP 2.0, the City’s environmental review considers the property’s relationship to floodways and floodplains. Homes located in flood zones require flood insurance to complete the purchase.
Homeowners must also maintain homeowners insurance and applicable flood insurance throughout the program’s compliance period.
There is also a current location-specific restriction buyers need to know about: City HCD homebuyer assistance is temporarily suspended for properties within the Fifth Ward/Kashmere Gardens UPRR sampling-zone boundaries while an EPA investigation is underway. Programs continue outside those boundaries.
Don’t Forget Houston Property Taxes
Receiving substantial homebuyer assistance doesn’t eliminate the ongoing costs of owning the property.
Houston-area buyers still need to budget for:
- Property taxes
- Homeowners insurance
- Flood insurance where applicable
- HOA dues
- Electricity
- Water
- Maintenance
- Repairs
- Security
- Other household expenses
Property taxes can be particularly important when establishing your comfortable monthly payment.
After becoming a homeowner, if you believe your property’s appraised value is too high, our Harris County Property Tax Protest Guide walks homeowners through the protest process.
What Should You Do While HbAP 2.0 Applications Are On Hold?
This is probably the most important question for someone finding this article today.
Don’t rush out and put a house under contract assuming these funds are available.
As of August 2026, the City says new applications are not being accepted or processed because available program funds have been exhausted.
But there are productive things a potential buyer can do now:
- Determine whether you meet the basic Harvey residency and income requirements.
- Review your credit and finances with a qualified mortgage professional.
- Establish what monthly payment you can comfortably afford.
- Complete or investigate the required HUD-approved homebuyer education.
- Learn about alternative Texas homebuyer assistance programs.
- Follow the City of Houston’s official program page for a funding announcement.
- Begin developing your home-buying strategy with your REALTOR® without assuming HbAP funding will be available.
That way, if the program reopens, you’re starting from a much stronger position.
Check the current Harvey Homebuyer Assistance Program 2.0 status
What If You Don’t Qualify for Harvey HbAP 2.0?
This is important too.
HbAP 2.0 is not the only path to buying a home.
Depending on your qualifications, you may have access to other:
- Texas down payment assistance programs
- Conventional low-down-payment financing
- FHA financing
- VA financing
- USDA financing
- Builder incentives
- Closing-cost assistance
- Local homebuyer programs
Start with our Texas First-Time Home Buyer Programs guide and Types of Mortgage Loans guide.
The goal isn’t to force your purchase into one particular program.
It’s to determine which combination of home, financing, assistance and monthly payment makes the most sense for you.
Frequently Asked Questions
How much assistance does Harvey Homebuyer Assistance Program 2.0 provide?
The City of Houston offers eligible buyers up to $125,000, subject to program qualifications and available funding. Assistance can be used for eligible down-payment, closing-cost, prepaid, principal-reduction and interest-rate-reduction expenses.
Is Harvey Homebuyer Assistance 2.0 currently accepting applications?
No, not at this time. As of August 2026, the City reports that available funds have been exhausted and it is not accepting or processing additional applications.
Do I have to have lived in Houston during Hurricane Harvey?
Yes. Applicants must have lived at an address inside Houston city limits on August 25, 2017.
Is the $125,000 a grant?
The assistance is structured as a 0% interest forgivable loan secured by a lien, with a 5-, 8-, or 10-year compliance period depending on the assistance amount.
Does the program require a minimum credit score?
The City’s program itself states that it does not consider credit score, although you still need to qualify for an eligible mortgage through a lender.
Can I buy new construction?
Potentially. New construction must satisfy applicable program requirements, and the City requires a TREC inspection after construction has been completed.
Can I use the money to pay my REALTOR®?
No. City program funds cannot be used to pay REALTOR® commissions.
The Bottom Line
The Harvey Homebuyer Assistance Program 2.0 is one of the more substantial homebuyer assistance programs Houston has offered, with up to $125,000 available to qualifying buyers when program funding is available.
For the right household, that could significantly change the economics of purchasing a home.
But there are 3 things buyers need to understand:
You have to qualify.
The assistance comes with a 5-, 8-, or 10-year compliance period.
And, most importantly, new applications are currently on hold because available funds have been exhausted.
That makes preparation particularly important.
If you lived in Houston during Hurricane Harvey and think you may qualify when funding becomes available again, schedule a 15-minute consultation with Kory White. We can discuss your home-buying timeline, target payment, financing, Houston neighborhoods, and alternative assistance options while you monitor the City’s funding status.
For the latest program information, always check the City’s official page:
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